Week 5 - Internal Control Objectives Flashcards
(5 cards)
1
Q
What is the first internal control objective?
A
No one person has complete control of a transaction from start to finish
2
Q
What is the second internal control objective?
A
The work of each person involved in accounting for transactions is supervised by someone else
3
Q
What is the first result of the two control objectives?
A
No one should have the opportunity to manipulate the accounting information
4
Q
What is the second result of the two control objectives?
A
The risk of material error is misstatement going undetected is reduced
5
Q
What are control procedures designed for?
A
Control procedures (the actual controls) are designed to ensure internal control objectives are achieved
